The Australian market has thrown off thoughts of European woes caused by a Greek default and started the trading day strongly to be 0.65 per cent up at noon. The big four banks are leading the way higher along with energy and health care.
Factory numbers from China are signalling the contraction in factory activity there is happening at a slower pace however second quarter GDP for the nation is due in two weeks time and analysts expect growth to come in at below 7 per cent.
The S&P/ASX 200 index is 35 points up at 5,494. On the futures market the SPI is 43 points higher.
Economic news
CoreLogic RP Data is reporting that capital city house prices rose by 9.8 per cent in 2015 financial year compared to 10.1 per cent in 2014. Sydney prices jumped the most, up 16.2 per cent to the end of June with Melbourne up 10.2 per cent. Adelaide was the third best performer, up 4.5 per cent.
Company news
Asciano Limited
(ASX:AIO) has today confirmed speculation it is the subject of a takeover bid. Brookfield Infrastructure Group have issued an proposal of $9.05 per share in cash and scrip in Brookfields listed infrastructure fund. Asciano’s board have agreed to discuss the proposal but say there is no guarantee of a binding offer at this stage. Shares in Asciano are up 21.28 per cent to $8.06.
DrillSearch Energy Limited
(ASX:DLS) have released an upbeat performance report in light of lower oil prices in the 2015 financial year. 12 new wells have been discovered. Production is at the lower end of guidance however capital expenditure also came in at the lower end of guidance.
Shares in DrillSearch Energy have gained 2.17 per cent to $1.06.
Best and worst performers
The best performing sector is industrial, gaining 3.3 per cent to 4,678. The afore-mentioned Asciano is this morning’s top performing share. Shares in Qube Holdings and Sydney Airport are also stronger.
The worst performing sector is materials, falling 1.2 per cent to 8,621. Shares in Arrium have fallen 5.56 per cent, trading at $0.13. Shares in Fortescue and Alumina are also lower.
Gold and the dollar
Gold is trading at $US1,174 an ounce.
The Australian dollar is buying 77.21 US cents.
